Sitios Latinoamérica, S.A.B. de C.V. (LASITE) Earnings Call Transcript

Good morning, ladies and gentlemen. Welcome to SITES LatAm Fourth Quarter 2025 Earnings Call. [Operator Instructions] Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational and financial projections and goals are the beliefs and assumptions of the company's Executive Board and the current information available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore, depend on circumstances that may or may not occur. Investors should be aware of events related to the macroeconomic scenario, the industry and other factors that could cause results to differ materially from those expressed in the respective forward-looking statements. Present at this conference, we have Mr. Hector Macias, CFO and Investor Relations Officer; and Mr. Luis Diaz, COO. Now I will turn the conference over to Mr. Hector Macias. Please, you may begin your conference.

Good morning, everyone. Before the Q&A session, I'm going to make a summary of the results. During the 12 months of the year, SITES maintained solid operational performance. achieving revenue growth across all regions where it operates. Consolidated EBITDAaL showed sustained expansion driven by operational efficiencies, reaching margins close to 90%. Results in Brazil and the Andean region stood out, continuing to position themselves as key drivers of growth and profitability. These results reflect the strength of the business model and the effectiveness of the optimization strategies implemented. On October 31, 2025, SITES informed the market that in line with its operational optimization strategy, it completed the transfer of 100% of the shares representing the capital stock of SITES LatAm, Colombia previously held by SITES. As a result of this transaction, the company concluded its operation in the Republic of Colombia. Over the past 12 months, we have built 1,065 new sites, and this growth was driven by Brazil and Central America mainly contributed 384 and 232 new sites, respectively. At the end of the fourth quarter, SITES registered 47,200 individual sites agreements and equivalents, an increase of 2,993 individual agreements when compared with the same period of the last year. Throughout the period, 290 new co-locations were achieved and SITES registered a consolidated tenancy ratio of 1.26 tenants per tower. During the last 12 months, we have observed favorable trends in our occupancy rates. Brazil concluded the period with 1.34 tenants per tower, accumulated 5 consecutive periods of growth. Central America registered a co-location rate of 1.31 per tenants per tower. Meanwhile, the Andean region registered a ratio of 1.15 tenants per tower. The Caribbean closed the quarter with 1.18 tenants per tower and Argentina, Uruguay and Paraguay, AUP region with a ratio of 1.24 tenants per tower, consistently improving its past records. Consolidated revenues for the 12 months of the year totaled MXN 16, 542 million, representing an increase of 8.3%, while tower lease revenues registered MXN 10,013 million, an 8.4% increase. Our revenues maintained favorable trends in all regions where we operate reflecting the strength of our operations and the stability of demand for connected services. Our consolidated EBITDAaL for the year was MXN 8,996 million. This represents a 9.4% increase and registered a consolidated margin of 89.8%, an expansion of 0.8 percentage points. The stability of our EBITDAaL margin reflects a steady revenue generation and effective implementation of our cost operating expense control strategies, highlighting the operational strength of SITES. During the year, tower live revenues increased across our regions, with Brazil increasing its revenue by 9.2% and Andean region increased 13.7%. Central America by 1.9%, while Argentina, Uruguay and Paraguay increased by 5.4%. The Caribbean by 20.2% all of them compared with the same period of last year, reflecting a good operating and commercial performance. EBITDAaL increased consistently across our regions with Brazil remaining SITES biggest market contributing with MXN 3,062 million to the consolidated EBITDAaL, while Central America contributed with MXN 2,077 million. The Andean region posted MXN 2,055 million, while Argentina, Uruguay and Paraguay contributed with 1,404 million. The Caribbean reached MXN 563 million, all of them registered an increase when compared to the same period of the last year. At the end of December, our gross debt stood at MXN 52,264 million, and it was equivalent to a net debt to EBITDAaL ratio of 5.65x, making the sixth consecutive quarter in which the deleveraging has been recorded. This is all our results. Please go ahead with the questions.

[Operator Instructions]

Okay. If there is no question this is the end of the call. Obviously, we are depending if you have okay, 1 question.

We have a question from Nick Ivanov with PGIM.

I have a quick question about the Colombian towers. Did you transfer them to America Movil? And did you get any compensation for them or just it was prearranged before and you didn't get any price for them?

Yes. We sell all of our operations then they're down there to Claro, and we receive obviously compensation for the sale of the towers.

And have you disclosed how much you received?

Not yet.

Okay. And why you're not interested in Colombia?

Okay. Colombia represents only around 1% of our operation and obviously demands a lot of CapEx. So for us, means sense that we have to sell the operation there.

[Operator Instructions] Our next question comes from Umar Zubair.

Yes. The first question is on the Colombia proceeds. You mentioned you're receiving cash proceeds, not ready to disclose it. Is it reflected in the end of year balance sheet? Or has that cash transfer not taking place? That's the first question. Second question is, what was the purpose of the rights offering? What would that cash balance be used for?

Okay. Let me start with the last question. Obviously, the increase of capital took place this quarter. So we only disclosed the results of the last quarter. In the next call, we will talk about this increase of capital. And about Colombia only represents 1% of our operations. So Obviously, the price that or the money -- the cash that we received is not representative in the whole so we won't show as a separate information.